Real GDP growth is a vital economic indicator that measures the per cent change in the value of all goods and services produced by an economy, adjusted for inflation, from one year to the next. By stripping out the effects of inflation, real GDP provides a clearer picture of an economy’s true growth. The calculation of real GDP growth is straightforward: Real GDP Growth= [(Real GDP in Current Year−Real GDP in Previous Year)*100/Real GDP in Previous Year], This formula yields the percentage change in real GDP from one year to the next.